Another 3 malls in China to open in 4Q11

Phillip - fair value S$1.77

- CapitaMalls Asia reported 3Q11 revenue of $66.9mil, 57.3% y-y higher, but PATMI of $36.5mil was 30.3% y-y lower.
- Fee income segment reported better than expected results
- Core earnings from China continued to fall below our expectations, but could be improved from FY12 onwards following the increase of stakes in 2 Shanghai malls
- Another 3 malls in China to open in 4Q11
- Maintain Buy with fair value increased to $1.77


AM Fraser

CapitaMalls Asia - Q3 net profit falls 30.3% to S$36.5m CapitaMalls Asia reported net profit for the 3Q11 fell 30.3% to S$36.5m, from the same period a year ago, weighed by a one-off provision for its Hong Kong listing expenses, despite a 57.1% growth in revenue to $66.9m.


CIMB - target price of S$1.16

CapitaMalls Asia. Start-up costs for new investments continued to plague CMA, a likely feature for the next few quarters. NPI yields, while growing on a same-mall basis, remained sub-optimal. Cost provisions for its dual listing didn’t help. Overall, 3Q11 results disappointed. Core earnings of S$43m form 17% of our FY11 forecast and 15% of consensus. 9M11 earnings are at 63%. We tweak our RNAV up on updates to our model and lower our FY11 EPS.

Maintain Neutral with target price of S$1.16 pending clearer signs of NPI uplifts. We deem its dual-listing exercise in HK a non-event